Method and system for monetizing content

ABSTRACT

An e-commerce system, comprising an endorsement engine and interface software coupled to the endorsement engine and adapted to interact with one or more content sources connected over a network and adapted to enable subscriptions from users using a protocol, is disclosed. In an embodiment, the interface software enables an endorsing user to browse the content sources and select a content item, to enter code associated with the selected content element, to view product information, to select a product for endorsement, and to enter code associated with the selected product. Upon retrieval of content by a viewing user who previously subscribed to the content source using the protocol, at least one of the content-specific code and the product-specific code is also provided to the viewing user via the protocol. Upon activation of the content-specific code, the viewing user is connected to the selected content and is able to view the selected content, and upon activation of the product-specific code by a viewing user, the viewing user is connected to a network-connected shopping cart, and is thereby enabled to buy the product.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present invention is a continuation-in-part of U.S. patentapplication Ser. No. 12/291,207, titled “Method and System forMonetizing Third-Party Content”, filed on Nov. 7, 2008, and is acontinuation-in-part of U.S. patent application Ser. No. 11/968,374,titled “Method and System for Monetizing User-Generated Content”, filedon Jan. 2, 2008, disclosure of both of which is hereby incorporated byreference in its entirety.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention is in the field of e-commerce, particularly as itpertains to virtual communities such as social networks, online gamingcommunities and “virtual worlds” and to content aggregators that makethird-party content available to members of virtual communities. Yetmore particularly, the present invention pertains to monetization ofthird-party content through virtual communities using networks such asthe Internet.

2. Discussion of the State of the Art

In the field of entertainment media, several trends have emerged inrecent years, quite separately, that when combined offer surprising newpossibilities for individuals and enterprises alike. One of these trendsis emergence of product placements as a new kind of advertisement. Thisnow familiar technique involves advertisers (vendors of products such aspersonal computers, cars, liquors and toys, just to name a few) payingcontent creators (movie studios, TV studios and others) to display orrefer to their products in prominent ways within the content itself.This is in stark contrast to previous practices in advertising, wherethe boundary between advertising and entertainment content was clearlydefined; with product placements, commercial messages can be includedwithin content for which consumers pay to view, and with which consumersare strongly emotionally engaged.

A second trend is democratization of content creation. In the age of thegreat movie studios, control of content creation (at least in the newmedia of radio and the movies) was entirely within the hands of a fewvery powerful businessmen. Later, as the costs of high qualityproduction came down, and as more and more channels to market becameavailable, first through UHF television stations and later through cableand satellite systems, content creation became more diffuse, takingplace across thousands of companies acting in various capacities. Butonly recently has serious content routinely been created by individualsacting as consumers rather than as employees of media companies. Theemergence of “user-generated content” (UGC) has been a large part of thepost-2000 boom in user-centric web services, which commonly is labeledbroadly as Web 2.0. Today, with blogs, personal web pages, and sites forthe uploading of user-generated music and video clips, more and more ofwhat people read, hear and watch is created outside of the corporateworld and in the world of UGC.

Another important trend has been emergence of highly targetedadvertising. Advertising once was a mass media affair, and segmentationtended to go no further than choosing during which radio or televisionshows to advertise. Today, Internet portal companies, search engines,marketing database companies with access to credit card and otherfinancial data all compete to precisely target advertisements to evermore finely sliced segments of the consumer population. The rapid riseof Google has also shown how much the advertising equation has changed;while charging only a tiny fraction of what traditional media chargedfor advertising, and while permitting only the most rudimentarytext-based advertising, Google has grabbed a significant share of theadvertising market and has built a highly profitable business, becauseits ad placements are highly targeted and because advertisers only paywhen ads are clicked.

Finally, the last few years have seen emergence of another new categoryof web-based entity, the virtual community. A well-known emergingcategory of virtual community is social networks. Already there arethousands of these, ranging from the very large operators such asMySpace or Facebook to very small, highly verticalized players. Thereare even companies selling platforms for launching new social networksquickly and inexpensively. And social networking has quickly become oneof the major outlets for user-generated content (in fact, one can vieweach subscribers profile page as a form of UGC). As is typical in webtrends, the original social networking pioneers offered “something fornothing”, and most social networking sites continue to offer a widerange of free services. But soon after, people began seeking ways todevelop profitable business models to monetize the large numbers ofloyal users that had been created in a very short time. Much as Googledid in search, these pioneers are looking to advertising to satisfy theneed to generate revenue from highly visited social networking sites,and they are typically adopting the methods used by Google—allowingusers to provide advertisers access to their profile pages in return fora small slice of the advertising revenue. This is by now awell-understood business model—the site operator, the user whose profilepage is used, the media buyer and others each take a piece of the totaladvertising spend committed by the advertisers (these by and large arethe same kinds of companies as in all of the previous ages plus the newweb-based companies).

Beyond social networks, other forms of virtual communities have becomecommonplace in the art. Among these are online gaming communities inwhich large numbers of individuals cooperate and compete innetwork-hosted gaming systems. Many of these are typified by games thatare indefinite in nature, and it is common for complex social structuressimilar to social networks to arise intentionally or merely as a resultof actions taken by many people in pursuit of their goals. Many onlinegaming communities include a strong element of user-generated content,with similar challenges and opportunities for monetization of thiscontent. Other forms of virtual communities typified by widespreadadoption and propagation of user-generated content, and the concomitantneed for means to monetize that content, include “virtual worlds” andfile sharing communities. All of these are merely exemplary of a strongshift away from static content to user-generated content in the onlineworld, and these examples should not be considered to be limiting forthe purposes of the present invention. All virtual communities in whichuser-generated content plays a prominent role provide background for,and will benefit from, the present invention.

Additionally, a vigorous new e-commerce market category has emergedrecently commonly referred to as content aggregators. These sites, whichresemble virtual communities and may be considered a subset of thatcategory, allow users (whether individual consumers, boutique contentcreation companies, or major media outlets) to upload content that canthen be searched and viewed freely by users of the content aggregatorsites. Importantly, these sites generally also provide richfunctionality for tagging, rating and commenting about content by anyand all users. These sites are actively experimenting in methods formonetizing their sites, generally by placing ads on their page that aretargeted based on the content viewing selections of individual users orgroups of users. Additionally, these sites have enabled the embedding ofadvertising within the content on their sites, such as at predefinedinsertion points (or times) in streaming videos. In the art at the timeof the present invention, the methods known to the inventors all involvethe selection of advertisements for insertion by the content aggregatoror a partnered advertising network.

One limitation of the currently emerging model of allowing advertisersto place ads on users' profile pages and other user-controlled oruser-generated content hosted in virtual communities is that it is alargely passive affair from the users' point of view. A user can, forinstance, subscribe to one of the many affiliate advertising servicesand make a space available for ads to be displayed, but the user has nocontrol over what ads are displayed. Advertisers will display ads thatseem to correlate well with the content of the page (for instance, auser's blog on “the new physics” will likely show ads from a sciencemagazine, whereas one that focuses on a particular sports team wouldlikely show ads promoting sports apparel or memorabilia). But the usercannot choose, and certainly the user cannot block undesirableadvertisers from her page.

This limitation, besides providing for the possibility of incongruousand occasionally counterproductive ad placements, also leads to aninability of mainstream advertisers to take advantage of the mostpowerful aspect of virtual communities—which is precisely that virtualcommunities are self-organized market segments. People who networktogether whether in a broad “network of friends” sense or in a narrow“network of first edition enthusiasts” sense, automatically definesegments of great interest to advertisers, as these virtual communitiesgenerally will share much in common, including buying habits. But sincethe essence of virtual communities is their self-organization and,accordingly, their dynamic nature, the traditional advertising modelfalls short.

This problem is exacerbated by the challenges faced by contentaggregators. As with virtual communities, advertisement placement islargely a passive targeting function performed either by a contentaggregator or by an advertising network that partners with a contentaggregator. Ads can be targeted based on the tagging and commentaryassociated with given media content, and can be inserted in the contentor on the page around the content while it is being viewed. But there isno provision in the art today for the users to select advertisements andthereby to endorse products that they prefer. Additionally, contentaggregators generally only have access to advertising revenues whileusers are actually on their sites; if the content is allowed to beembedded and displayed on third-party sites (such as a user's profilepage in a virtual community), the content creator and content aggregatorhave no way to make money except by inserting ads into the media itselfwithout any knowledge of where the content is being viewed, or by whom.

What is clearly needed in the art is a way to bring together the worldsof advertising, virtual communities, and content aggregation in a waythat serves the best interests of all of the key constituents—those whowish to advertise, those who wish to monetize their content, those whoaggregate content from others, those who manage virtual communities, andthose to whom advertisements are directed. Users of virtual communities,should they be able to influence what is advertised to them, and whenand how it is advertised to them, would be able to achieve thereasonable goal of having ads that address their particular needs andpreferences, at a particular point in time or generally, and to share inthe benefits thus created. And, in a continuation of the trend away frommass advertising that the search-based ad illustrates, advertisers wouldbe able to precisely target content at those virtual networks that aremost predisposed to favorably react to the message, and to do so at aremarkably low cost thus driving revenue per ad dollar up dramatically.Content creators would be able to enjoy much greater and more targetedrevenue-generating distribution channels, and content aggregators wouldbe able to greatly expand their opportunities for monetizinguser-generated content (UGC) that is hosted on their sites.

It is an aim of the present invention to provide a system and a methodfor monetizing the user-generated content that dominates virtualcommunity sites, and to provide advertisers a method to “ride theuser-generated content” wave in order to achieve improved levels oftargeting specificity and return on investment. It is a further aim ofthe present invention to provide a system and method for monetizingthird-party content by enabling endorsing users to select third-partycontent for display on pages or sites they control, to select productsor services they wish to endorse, and to associate their endorsementswith the third-party content.

Internet content is often accessed by users employing various readerapplications such as Google Reader which collects related content frommany sources into one convenient place using the Really SimpleSyndication (RSS) standard. This has become a very efficient andconvenient way to peruse multiple publications. There is thus a need forthe published content that is accessed by RSS technology to haveendorsed product placements pass through to the viewer along with thefeatured content. An embodiment of this invention enables the viewer toclick on specific endorsed products through an RSS accessed content pageand be routed directly to a universal shopping cart for check out. Thisability vastly expands the potential market for an authors endorsedproduct. Endorsers can offer their content pages on RSS feeds and stillretain the potential revenue shares for sales of products endorsed intheir publications that are ultimately viewed from an RSS reader.

The value of targeting a specific product or marketing campaign to aspecific group of potential buyers is well documented. Advertisers,merchants and virtual community organizers all have much to gain byunderstanding what works and what doesn't work with a specific targetaudience. Yet in the past it has not been possible to collect, in oneplace, all the data concerning the products promoted, the context inwhich such promotions are viewed, the personal characteristics of theendorsers of the products, and the personal characteristics of theviewer of the promotion. Furthermore it has not generally been possibleto monitor all behavioral events from ad placement, to ad display andviewing, to “click through” on ads, and finally to actual transactions,especially when (as is common) these events take place in differentonline locations. For instance, ad placement decisions are made in oneplace generally using a specialized tool. Ads are viewed in associationwith content that could be hosted anywhere, and when a user clicksthrough an ad she is generally taken to yet another location. Actualpurchases are often conducted on yet another online location. Thereexists a very real need for a comprehensive data collection facility toaggregate data on products, content, endorsers, and viewers/purchasers,with the data encompassing all activities from ad selection to adplacement, ad viewing, ad click through, product viewing and selection,and shopping cart/checkout transactions. Furthermore, it is desirable tomake all of this data available in business intelligence user interfacesto allow users who are merchants/advertisers, virtual communitymanagers, content owners or creators, and endorsers to analyze theeffectiveness of their previous decisions and to optimize their onlinemerchandising activities.

SUMMARY OF THE INVENTION

In an effort to solve the problems described above of monetizinguser-generated content and third-party content, the inventors conceivedof a fundamental shift in the longstanding paradigm of advertising.Specifically, they conceived of the notion of shifting from the model ofvendors hawking their own wares through various advertising meansinvolving the pushing of vendor materials to potential consumers to themodel of users promoting and selling products that they personally findvaluable or useful. Accordingly, the inventors provide a system for themonetization of user-generated or third party content usinguser-controlled product placements within, adjacent to, or near thecontent.

In an embodiment of the invention, an e-commerce system comprising anendorsement engine executing on a network-connected server and aninterface software executing on a network-connected server coupled tothe endorsement engine and adapted to interact with one or more contentsources connected over a network and adapted to enable subscriptionsfrom users using the protocol. In the embodiment, the interface softwareenables an endorsing user to browse the content sources and to select acontent item. The interface software further enables the endorsing userto enter code associated with the selected content element. Theinterface software further enables the endorsing user to view productinformation concerning products available for endorsement and to selecta product for endorsement, and to enter code associated with theselected product, the product-specific code compatible with the selectedcontent item. Also in the embodiment, upon retrieval of content by aviewing user who previously subscribed to the content source using theprotocol, at least one of the content-specific code and theproduct-specific code is also provided to the viewing user via theprotocol, and upon the activation of the content-specific code by aviewing user, the viewing user is connected to the selected contentstill located at its original content source and is able to view theselected content while still connected to the interface software, andupon the activation of the product-specific code by a viewing user, theviewing user is connected to a network-connected shopping cart, and isthereby enabled to buy the product.

In another embodiment of the invention, a method for monetizing onlinecontent is disclosed. In the embodiment, information and code related toa specific product is transmitted across a network from anetwork-connected server to an endorsing user, and information and coderelated to a specific content element suitable for online display isretrieved from a third party and made available to the endorsing user.In the embodiment, the product-related code and content-related code isembedded into a software module executing on a network-attached serveron request from the endorsing user, and subscription to the specificcontent element or its source via a protocol by a viewing user isenabled. Additionally, in the embodiment, upon the content-related codebeing activated by a viewing user following retrieval of the contentelement according to the subscription, the viewing user is enabled toview the retrieved content element and, upon the product-related codebeing activated by the viewing user while viewing the retrieved content,the viewing user is connected to a network-connected shopping cart,thereby enabling the viewing user to purchase the product.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

FIG. 1 is a block diagram of components of the invention in oneembodiment, highlighting different roles played in carrying out theinvention.

FIG. 2 is a process flow diagram of a method of the present invention.

FIG. 3 is an example of a user-generated content page illustrating howusers can consume monetized user-generated content according to thepresent invention.

FIG. 4 is an example of a mobile phone based instance of the presentinvention.

FIG. 5 is another example of use of the present invention, as a meansfor monetized user-generated content in a multiplayer online gamingenvironment.

FIG. 6 is a process flow diagram of a financial transaction conductedaccording to an embodiment of the present invention.

FIG. 7 is a process flow diagram of a product promotion quality ratingprocess of an embodiment of the invention.

FIG. 8 is a process flow diagram of monetization of third partyuser-generated content according to an embodiment of the invention.

FIG. 9 is a block diagram of an embodiment of the invention that enablesthe monetization of third party user-generated content.

FIG. 10 is a block diagram of an embodiment of the invention showing therelationships among the various parties involved in monetization ofthird party user-generated content.

FIG. 11 is an example of an endorser home page according to anembodiment of the invention.

FIG. 12 is an example of an embeddable widget according to an embodimentof the invention that allows for presentation of third partyuser-generated content with embedded product endorsements.

FIG. 13 is a process flow diagram of an exemplary financial arrangementconducted according to an embodiment of the invention.

FIG. 14 is an example of possible compensation or revenue share optionsavailable to the endorser.

FIG. 15 is a block diagram illustrating an embodiment of the inventionusing the RSS standard technology to enable the syndication ofendorsements along with associated content from within a virtualcommunity or web portal.

FIG. 16 is a block diagram of an embodiment of the invention using theRSS standard technology to enable the syndication of endorsements alongwith associated content produced within a blogging site or other contentor site capable of allowing RSS subscriptions.

FIG. 17 is a diagram illustrating an embodiment of the invention whereby various data is continuously aggregated into one or more relateddatabase systems so that this large data set can be accessed byanalytics tools

DETAILED DESCRIPTION

The inventors provide, in one embodiment, a system and a method formonetization of “user-generated content” (UGC) in which creators of UGCare enabled to select from a variety of products, from a variety ofvendors, and to make them available for viewing and purchase entirelywithin their UGC. That is, it is an object of the present invention thatcreators of UGC are able to choose product information about products oftheir choosing and to embed that information, in a variety of ways, intotheir content. It is an object of this invention that viewers of UGCthat has been prepared using the instant invention will be able to viewthe images or information associated with the products being promoted bythe creator of the particular UGC, and to purchase such promotedproducts, or to mark them for potential future purchase, as desired. Itis yet another object of this invention to provide a monetary reward tothe creators of UGC who thus successfully promote products for sale; itshould be understood, however, that rewards other than money may also begiven to such creators of UGC according to the invention. For example,“loyalty points” such as frequent flyer miles could be rewarded as aproxy for monetary reward, without departing from the spirit of theinvention. Where “monetization” and “money” are used in thisspecification, they should be understood to mean “monetization or thelike” and “money or an equivalent reward”; the form of the rewardprovided is not an essential element of the invention and the inventionaccordingly should not be limited to cases involving actual monetarytransfers.

FIG. 1 is an illustration of an embodiment of the invention in which avirtual community 120 is enhanced by the provision of a universalshopping cart 111, which can be provided as a service by a serviceprovider 110 such as a third party web services provider. The universalshopping cart 111 alternatively can be provided by the virtual community120 itself, without the need of a third party service provider 110. Theuniversal shopping cart 111 of the invention provides a means formerchants 100 to make product placements 101, passing productinformation about products that are available for sale through thevirtual community 120 using interface 103 to the universal shopping cart111, as well as a means for receiving sales transactions 102 from theuniversal shopping cart 111 via another interface 104. It should benoted that the interfaces 103 and 104 need not be separate, but thefunctions of product placement 101 and sales transactions 102 could becarried out over a single interface between the merchant's 100 systemsand the universal shopping cart 111.

Virtual communities 120 are common on the Internet today, and typicallyprovide their members (121 and 125 a through 125 n) with a variety ofservices intended to enable them to establish their own social groupingsdynamically in a content-rich way. Among these services, virtualcommunities 120 typically provide some form of authoring component 122,where a publishing user 121 can create and edit content 131 and, whensatisfied, make that content available as published UGC 123 to otherusers (125 a through 125 n) via consuming components (135 a through 135n). Without loss of generality, it should be noted that in a preferredembodiment the authoring component 122 is a web page where publishingusers may create and edit content 131 such as blogs, profile pages,photos, videos, personal web pages and the like. Also without loss ofgenerality, it should be noted that in preferred embodiment theconsuming components (135 a through 135 n) are web browsers, and thepublished user-generated content 123 consists of pages within a socialnetwork's 120 web site that contain the UGC 123 created by user 121 inauthoring component 122.

While in an embodiment the virtual community 120 is one of the manyfamiliar social networks available on the Internet, it should beunderstood that the invention can be used to market goods and servicesto any human network 120, for example (but not limited to) console oronline gaming systems where gamers create UGC 123 and the gamingindustry operates the universal shopping cart 111 of the invention,kiosks where UGC is delivered to malls or stores using the method of theinvention (the universal shopping cart 111 in this case could beoperated by an operator of a chain of malls, or a chain of stores, or bya specialist third party who places kiosks in prominent places to allowconsumption of UGC 123 by network members), virtual worlds where groupsor entire virtual societies are formed and the universal shopping cart111 is operated either by the host of the virtual world or by a thirdparty service provider, or even offline networks such as groups of“friends and family” who subscribe to a value-added mobile phone servicethat allows users to create and post content that can be viewed onmobile phone service that allows users to create and post content thatcan be viewed on mobile phones, and where the mobile phone carrier orone of its partners operates the universal shopping cart 111. Animportant element of the invention is provision of a universal shoppingcart 111 whereby members of a human network can incorporate productinformation from merchants 100 into their published user-generatedcontent 123 in order to promote the sale of those products, and the factthat the consumers (125 a through 125 n) of the published UGC 123 canview product promotions and product information as an integral part ofthe user-generated content, and that they can purchase products or markthem for later review and possible purchase, entirely within thepublished UGC 123 via the consuming component (135 a through 135 n).Only when finished and ready to check out does the consuming user (now aBuyer) (125 a through 125 n) interact with the universal shopping cart111, specifically by going through the shopping cart's checkoutprocedure.

FIG. 2 outlines a method of the present invention. Preliminarily (201),businesses add products available for promotion and sale via the virtualcommunity 120 to the universal shopping cart 111. Merchants can specifyterms under which the products can be promoted and sold when adding themto the shopping cart. Clearly one of the key terms is price, which canbe expressed as a fixed price or as a range of prices. In an embodimentof the invention, products can be placed in the universal shopping cart111 for auction within the virtual community, and members of the virtualcommunity could add that product to their UGC 123 and thereby acceptbids; the winning bid would get the product, and the creator of the UGC123 from which the winning bid was entered would receive a reward fromthe service provider 110 that operates the universal shopping cart 123.Businesses may also upload additional information about their productsinto the universal shopping cart, for example the dates when the productis available, product images, shipping costs and schedules, promotionalmaterials in text, image or video form, and so forth. In an embodimentof the invention, merchants may specify demographic or other informationabout the target market of the product, although it should be clear thatamong the key benefits of the instant invention is the fact that it isthe users who self-select by choosing what products to promote and withwhat people to associate; merchants implicitly are marketing to thepeople who associate with (network with) the people who choose theirproducts to promote within their UGC 123. By making demographic andother information about who might find the product most useful,merchants are not so much targeting a market segment as they areadvising those who self-select the market segment.

In step 202, virtual community members create user-generated content forposting or publishing as published UGC 123. As mentioned above, thisstep could comprise many possible actions by members of the virtualcommunity, including but not limited to posting a blog entry, creating avideo, adding content to a personal web page, updating a personalprofile page, or adding a comment or essay in a public forum section ofthe virtual community. The virtual community member then selectsproducts from the universal shopping cart and adds them to heruser-generated content posting 203. The user actually inserts or embedsa block of code downloaded from the universal shopping cart 111 into heruser-generated content 123; this embedded code block could for examplebe hypertext markup language (HTML), extensible markup language (XML) orthe like. The code could contain a link to an image or a video, suchthat when a viewer of the UGC 123 clicks on the link they can view theimage or watch the video. Such techniques are well established in theart. The embedded code can also contain means for executing a purchaseor for marking an item for later review and purchase. These means couldbe, but are not limited to, a “Buy” button viewable by the user (“user”herein refers to the consumer (125 a through 125 n) of user-generatedcontent), a “hot spot” in an image or a video which, when moused over,displays a “buy this item” tag, or other similar means.

After the creating user has created her content and added products fromthe universal shopping cart 111, other virtual community members viewthe newly published posting 204 and may optionally choose to view or buyproducts that are promoted in the new posting. In particular, in step205 some virtual community members buy products directly from theposting member's user-generated content posting. The user may choose tocontinue viewing UGC 123 of the same user, or indeed may move on toother network members' user-generated content 123. This is an importantadvantage of the present invention: users may continue browsing the sameor other users' UGC 123 as desired, and thereby they may accumulateseveral purchase decisions (or tentative decisions) before deciding tocheck out and complete purchases. Users can move to checkout at any timeor they may be prompted, if they elect to leave the social network, togo to checkout. Optionally, a virtual community member's productselections may be kept on hold and revisited on a subsequent visit tothe virtual community; this functionality is implicit in the universalshopping cart, which receives (through the mechanism of the embeddedcode) a notification each time a user selects a product for viewing orpurchase and can store this information for use when the user returns.When a user ultimately does decide to purchase, they proceed to theuniversal shopping cart checkout 206 where they can choose to add ordrop products, add or change method of payment, select shipping options,and so forth. Note, however, that in embodiments where the virtualcommunity is not an online network, but is a network of humansconducting offline interactions, the checkout feature will still bepresent. As is discussed below, there will be a communications means ofsome sort, typically internet protocol (IP) based, between theuser-generated content and the universal shopping cart, and thiscommunications means would be used as well for checkout.

Once a purchase has been made, the merchant (or merchants; a singlecheckout can be conducted to purchase products from a plurality ofmerchants, and indeed from a plurality of UGC promotions) receivesnotification of the order and payment arrangements from the serviceprovider 110 that operates the universal shopping cart (step 207; recallthat this service provider could in fact be the operator of the virtualcommunity as well, but need not be). Finally, the member from whose UGC123 each purchase decision was made receives an endorsement fee or othermonetary reward from the service provider 110 in step 208. Again, from asingle “browsing expedition” or web session, multiple purchases frommultiple UGC promotions could be made. And the products could be frommultiple merchants. Accordingly, each transaction is tracked in theuniversal shopping cart as a tuple, record, or set of data elementscontaining at least the buyer's identity, the content creator'sidentity, and the product's identity (which can be tied to the merchantbased on the data provided in step 201).

FIG. 3. provides an example of what user-generated content(UGC)-containing product promotions according to the invention mightlook like. In this embodiment, the UGC 123 is a web page 300 containinguser-created text 301. In this case the text describes how a DIY (Do ityourself) project was completed; this might be a common type of postingon a homeowner's social network. Additionally, the creator to the pageadded two tabs labeled “Recommended Tools” 302 and “Supplies” 303. Onthese tabs are placed text, tabular data, or (as in the example) imagesof products that were found useful to the author. It is clear that thisis one natural form of mixing user-generated content 123 with productplacements (i.e., advertisements). Others who want to replicate thesuccess one UGC author achieves may well want to know what particulartools and supplies were found the most useful, and it would beconvenient for such users to be able to click on the items he does notalready possess and have them effortlessly shipped to his home in timeto start the project on the weekend.

FIG. 4. provides an example of another embodiment of the invention. Inthis embodiment, user-generated content is viewed on a mobile phone orpersonal digitals assistant (PDA) 400. A member of a virtual communityhas created her own content comprising a guided tour of New York City,including a map of the tour as she conducted it 401, a narrative of thetour 402, and a selection of “Great things to do in New York” 403. Theitems (404 a through 404 n) are product placements selected by thecontent creator to enhance the value of her guided tour content byallowing viewers, as they follow her path through the city, to selectand purchase additional activities without having to leave her content.Note also that the content creator could leverage the fact that manyPDAs and mobile phones today have Global Positioning Systems (GPS)receivers and can track where the user is in the city very accurately.This can be used to move the map as the user walks the tour, but it canalso be used to change the promotions offered 403 based on where theuser is. Such location-based product promotions within UGC 123 are anextremely potent form of UGC-based advertising. While location-basedservices are emerging rapidly in the marketplace, and in particularwhile leveraging location information in mobile applications is known inthe art, the combination of this capability with the unique embedding ofproduct promotions within user-generated content 123 (the object of thepresent invention) is new. Each item (404 a through 404 n) represents arecommendation of a product (or service—these terms should be understoodto be interchangeable throughout this specification) by a person whomthe user is likely to trust more than a mass advertiser because the useris a member of the same virtual community as the content creator. Thusthis location-based advertising example represents an extraordinarilyprecise targeting of an advertisement, and is thus one for whichadvertisers will in general be willing to pay a premium.

FIG. 5 is yet another embodiment illustrating an exemplary use of theinvention to monetize user-generated content 123. Merchants (500 athrough 500 n) make products available, as before, for promotion bymembers of a virtual community via a universal shopping cart 111. Inthis case, the virtual community is an online gaming community (514 and520 a through 520 n) which shares an interest in games produced by gamecompany 502, specifically the game domain 501. Optionally, the merchantscould contract with the gaming company 502 to promote their products inthe game domain 501, or they could upload product information directlyto the universal shopping cart 111 as before. The gaming companyprovides a game scenario editor 503 tailored to the domain 501, throughthe use of which game designer users 514 can design custom scenariosthat can be deployed 506 and then viewed online 504 by players (520 athrough 520 n). The game designer user 514 can be a player as well, orshe could be a specialist member of the virtual community who designshigh-end scenarios full-time. But as in other embodiments of theinvention, by gaining the ability to embed product promotion frommerchants 500 into her scenarios, the game designer user 514 gainsaccess to a valuable new revenue stream and a means of enhancing gameplay. One of the benefits the inventors foresee for the monetization ofuser-generated content 123 is illustrated in this last comment—whenadvertisements are inserted by trusted members of the virtual communityin order to enhance the experience of using the virtual community, theads are likely to be viewed positively rather than as a burden (which ishow people generally view advertising). People are consumers by nature,and they appreciate being well-informed, so when useful informationcomes to them in a venue they enjoy, from sources they trust, buyers arelikely to appreciate sellers for doing them a service. This upending ofthe traditional view of the role of advertisers as mass manipulators isimportant. The product promotions placed within their user-generatedcontent by members of a virtual community are likely to not be viewed asadvertisements at all by their viewers, but rather as welcome sources ofinformation and hassle-free purchasing. To make this point clear, inthis example the products being sold might be game accessories, books,and items that are closely tied to the thematic content of the game, andthese are items that players of the game would enjoy seeing in the game;real-world consumption becomes part of the alternate reality (especiallywhen considers virtual worlds, a specialized kind of massivelymultiplayer online role-playing game that could have promotions added inas shown in FIG. 5).

FIG. 6 shows an example of how use of product placements inuser-generated content can result in monetization of that content forits creators and for the operator of the virtual community 120. After auser (125 a through 125 n) navigates 601 to user-generated contentcreated by other users, and selects a page or view that contains productplacement text, images or videos 602, then a series of questions can becontinuously evaluated until such time as the user leaves the siteentirely 613 (although, as noted above, if a user returns later and buysa previously viewed product, then the UGC author would be entitled tosome set fee, called Fee 1 604). Typically, this Fee 1 would be variablebased on the value of the product sold, although it does not need to be.Other formats might include a fixed fee (for items of generally lowcost) or fees based on level of sales achieved by the creating user forthe month, or quarter. It should be appreciated that there are anynumber of ways one might choose to calculate the fee; what is essentialhere is that the user (and the virtual community site/operator, out ofwhose fee the creating users' fees are paid in most cases, althoughagain this can be done in several ways according to the invention) getsa monetary reward for selling the product. Similarly, if the user addsan item to his Favorites 605, or otherwise marks it for futurereference, a different, generally lower, Fee 2 606 may be paidoptionally to the content creator. Similarly, if a user forwards theproduct to another member of the social network 607, the creator of theUGC 123 where the product was viewed can optionally be paid a Fee 3 608by the virtual community operator. In similar fashion, in an exemplaryembodiment, when users click on a product placement to view details 609,or when a user simply views a product placement 611, the content creatormay optionally be paid Fee 4 610 or Fee 5 611, respectively. It shouldbe understood that these fees are exemplary in nature, and some, none orall of them may in fact be paid, and others not listed could be paid, inorder to provide the content creator with an inventive to promoteproducts that are likely to be attractive to the members of the virtualcommunity who are likely to view her content.

FIG. 7 shows a product placement quality rating process of an embodimentof the invention. It would be extremely useful for a content creator toknow which promotions were the most successful, and further tounderstand whether lack of success is due to lack of interest in theproduct or, more seriously, due to user discontent with how products arebeing promoted. Similarly, merchants and optionally virtual communityoperators have a need to understand how effective their marketingactivities into a virtual community are. Merchants may choose to paymore, or to limit availability of certain products for placement tocontent creators who achieve quality ratings above some minimumthreshold. Accordingly, after users view product placements withinuser-generated content and optionally make purchase decisions 701, usersmay optionally be asked to rate the perceived quality of the productplacement or placements they have just viewed 702. The request to ratequality can be done after every click-through, on a random sample basis,after every purchase, or based on any of a number of sampling techniqueswell established in the art. Quality ratings provided by users are thenaggregated 703 and used to establish overall ratings for each contentcreator. Ratings can be based on several optional “dimensions”, such assuitability of endorsed or promoted products for the target audience,accuracy of descriptions provided by content creators (if any), qualityof products purchased and purchase, payment, and shipping processes, andso forth. Essentially any factor that can contribute to perceivedquality, or lack thereof, of product placements, viewing, order andreceipt processes, and of products themselves, can be rated in this way.Ratings can then optionally be provided 704 to merchants and contentcreators. A content creator might use these reports to refine methods ofpresenting product promotions, or to refine product selections.Merchants can use this data, as mentioned, to refine their marketingefforts through virtual communities. Also, optionally feedback scorescan be provided to viewers of UGC 123 in the virtual community, forexample by displaying information such as “this member's quality scoreis 97%, with 32 responses” when a product placement is selected fordetailed viewing. This reputation system is similar to others known inthe art, for example on large auction and ecommerce sites; an additionalelement here is not so much how data is gathered or used but more whatthe gathered data represents—it reflects the evolving reputations ofmembers of the virtual community as endorsers of products. It isanticipated by the inventors that merchants may well be willing to paymore for promotion of their products by content creators who in effectdevelop reputations as “product gurus to be trusted” within theircommunities.

FIG. 8 shows a method, according to an embodiment of the invention, formonetizing third party content. Many users of virtual communities maydesire not only to endorse, or advertise, products in their own UGC 123as described above, but also to endorse products within or connectedwith third party content such as is commonly provided by contentaggregators such as YouTube®, FlickR®, Revver®, and the like. In anembodiment of the invention, such users decide to monetize third partycontent on their own pages in step 801. Pages could be profile pageswithin a virtual community 120, scenarios within a gaming domain 501,personal blogs, personal websites, or any online location under controlof the user. Under control here means sufficiently under control of auser to enable carrying out embodiments of the invention, and does notnecessarily imply complete control or ownership of the online locationby the user. Having decided 801 to endorse products within or inassociation with third party content, the user in step 802 browses oneor more content aggregator sites to select third party content which canbe used in conjunction with endorsements of products (or services). Thisstep is exemplary of the underlying step, which is that a user selectssome content for display on some location under their control asdescribed above, potentially at least for the purpose of endorsing andpossible selling products and services to others. Other examples ofcontent selection include, but are not limited to, selecting contentfrom a storage device such as a local hard drive, a hard drive on anaccessible network, a removable “thumb drive”, a published CD or DVD,and the like. Once content is selected, a user then copies embedded codefrom the content aggregator site in step 803. Such embedded code, asdescribed above, is designed for insertion into online locationsprovided with a suitable insertion point, much as is accomplished in theart with embedded code for advertising networks. Again, this step isexemplary, as other means can be used within the scope of the inventionto enable the embedding of the third party content in online locationsunder user control. For example, if a user intends to host content froma storage device and runs her own web site, she could add code writtenfor the express purpose of inserting such content directly into her website source code. Alternatively, readily available software modules, orwidgets, that enable streaming media could be inserted into an onlinelocation under control of a user, and content could be loaded directlyinto such a software module directly from a storage device. In step 804,users access a server operated by virtual community 120 or serviceprovider 110 that hosts software that acts as a third party endorsementengine. This software and its associated server allow users to uploadthe embed code obtained in step 803 and to select products to endorsefrom among those made available for endorsement by merchants 100.Alternatively, in order to enable endorsement of products in or withthird party content, in step 804 users load code obtained in step 803into a software module provided by a service provider 110, for examplethe MyMugzy® widget provided by Pure Verticals, Inc. The MyMugzy widget,or equivalent software modules, is adapted to contain code obtained in803 and to interact with a universal shopping cart 111, thus linking thethird party content and access to the universal shopping cart in asingle software module that is suitable for inclusion in onlinedocuments or locations.

In a subsequent step (805), users of an embodiment of the inventionchoose whether to make third party content accessible outside of thecurrent online location. Alternatively, when users are conductingmonetization of third party content within a virtual community, steps801 through 804 are performed on a suitable page or in a suitablesoftware module hosted by service provider 110, which as before couldeither be the operator of a virtual community 120 or could be providingservices on behalf of a virtual community 120, and step 805 is theservice provider's or virtual community's selection of whether userswill be allowed to make third party content accessible outside of thevirtual community 120. The decision in step 805 may optionally be madebased on specific rules or terms enforced by the owner or aggregator ofthe content selected in step 802. Such rules or terms may be contractualor may be enforced through the inclusion in embedded code downloaded instep 803 of software routines which prevent redistribution of contentbeyond the location for which it was originally released. For example, acontent aggregator or content owner can embed code which is rendered atthe time of the selection in step 802 and which only allows selectedcontent to be hosted at or viewed from the location from which a userselected the content. Alternatively, a content aggregator or contentowner could provide a list of online properties or domains withinembedded code provided in step 803 to users, and only content hosted atone of the online properties or domains specified in a list so providedwould be functional. In another example, a content aggregator or contentowner could include code means in embedded code provided to users instep 803 that, when users attempt to view content associated with theembedded code, communicates over a network such as the Internet with aspecified service or server connected to the network and requestspermission to display the content to the requesting user. In thisexample, the provision of permission, and possibly the attachment ofusage conditions to such permission, can be based on a number of factorsthat could be included in the request, including but not limited to theidentity of the requesting user, the membership status of the requestinguser in some group or demographic segment, the time of day, and soforth. It will be appreciated that quite sophisticated mechanisms can beestablished by content owners or content aggregators, or both, tocontrol when and how their content is displayed, and to control whetherproduct endorsements are to be allowed to be inserted into or associatedwith their content, how those endorsements can be performed, who canendorse products, and what products or vendors can be endorsed. Forinstance, a content owner could prevent competing content creators fromadvertising their content to potential buyers from within or adjacent tothe content owner's content. If content export is not allowed in step805, then in step 806 the content is displayed within Mugzy-enabledpages within the virtual community 120 or within the website or domainto which the content was limited in step 805, and in step 807 otherusers of the virtual community or domain in which the content is hostedview the content and associated product endorsements and can optionallypurchase products from within the hosting user's pages or locations. Ifcontent export is allowed in step 805, then in step 808 the user postsor uploads embed code for the MyMugzy widget, or equivalent softwaremodules or widgets adapted to contain the embed code from step 803 andsuitable product endorsements, to one or more target external sites oronline locations adapted to receive such embed code. The embed code canbe in JavaScript or any other suitable form that is commonly accepted byonline properties such as virtual communities, blogging networks orsites, consumer feedback sites, and the like. Note that the decision instep 805 is not necessarily an either/or decision; in some cases userswill be allowed to export the third party content and associated productendorsements and also to host them within the virtual community orservice provider or user-controlled location at which the decision 805was executed. For example, a user may desire to display a video from afavorite coffeehouse musician and endorsements for one or more of themusician's published CDs. The user can do this from her profile page ina social network or other virtual community, for example by following alink provided by the social network and then browsing third partycontent to find a suitable video. The user can then select products forendorsement, in this case CDs from the favorite musician, using theMugzy third party engine provided by the social network. Once the thirdparty embed code and product endorsement code is obtained and linked oneto the other, the user can add the video for viewing under a “music Ihave recently found” heading on her Mugzy-enabled profile page withinthe social network, and she can also obtain the equivalent MyMugzy embedcode, which in effect wraps around the full functionality provided onthe Mugzy-enabled personal profile page in an embeddable software objectthat is invoked when the MyMugzy embed code is itself invoked from anexternal location. She can then post or upload this MyMugzy embed codeon her profile pages in one or more additional virtual communities, aswell as on her own personal home page and her own personal blog. Infact, the MyMugzy embed code can be embedded in media files providedwith insertion points for embedded code and distributed on a CD orremovable storage device to particular individuals. Those receivingindividuals could then, when playing the content on the CD or storagedevice at their leisure, view and purchase product endorsements from theendorsing user whenever the viewing is conducted while online (theMyMugzy embed code, like all embed code, requires access over theInternet to one or more locations specified in the embed code; in thiscase the original virtual community's third party engine). Once MyMugzycode embed code is uploaded to a suitable external web site, virtualcommunity page or other online location (or it is loaded into a suitablenetwork-connected playback device if the code is loaded on a CD orportable storage device), visitors to the external site (or users of theCD or portable storage device) can view the hosted third party contentand view and optionally purchase, recommend, rate or comment on productsendorsed in or adjacent to the hosted content. In a preferred embodimentof the invention, viewing users do not need to leave the hosted contentin order to view or purchase endorsed products; the code necessary toconnect back to the universal shopping cart is included in the MyMugzyembed code and the entire viewing, selection and checkout process (orany portion thereof) can be performed from within the control of theMyMugzy widget without leaving the associated third party content.

FIG. 9 illustrates a preferred embodiment of the invention in whichviewers of a Mugzy-enabled site 900 view third party content whileviewing a user's page 902 on the site. The user responsible for page 902accesses, via a third party endorsement engine 901, third party contentavailable at one or more content aggregator sites 910. Third partycontent 904 is provided by content creators or owners 911, whooptionally upload their content to one or more content aggregation sites910. Content creators 911 can upload the same content to one or moreaggregators, and users of the Mugzy-enabled site 900 can access thirdparty content from one or more aggregators. Additionally, not shown inFIG. 9 but similarly exemplary of the invention, users can access thirdparty content directly from the content creators 911 without theintermediary services of a content aggregator 910. Users responsible foruser-managed pages 902 on site 900 access a third party endorsementengine 901 not only to browse and select third party content, but alsoto interact with a universal shopping cart 111 in order to selectproducts or services for endorsement within 903 or alongside 905 thethird party content. In an exemplary embodiment, the third party contentis a video 904, and products are endorsed via embedded endorsements 903which can be inserted at defined insertion points within video 904 orcan be viewed by mousing over hot spots in the video window. Hot spotscan be made active throughout the length of the video or only duringcertain portions of the video, as specified by the managing user in thethird party endorsement engine 901. Alternatively, endorsements 905 canbe deployed adjacent to, or close to, the third party content accordingto the invention. Visitors 913 to the Mugzy-enabled site 900 may viewuser-managed pages 902 and in particular they may view third partycontent 904 that is hosted thereon. While viewing third party content,visitors 913 are optionally shown one or more embedded, adjacent ornearby product endorsements (903 and 905). At any time while viewing thethird party content, viewers may elect to click on or otherwise selectone or more of the product endorsements in order to view more detailsabout the product or products being endorsed. The additionalinformation, and the ability to select endorsed products for addition toa universal shopping cart, is managed by the third party endorsementengine 901.

FIG. 10 shows another embodiment of the invention more particularlypointing out an exemplary set of relationships between the variousentities involved in monetization of third party content. Not all theentities shown in FIG. 10 are required in every embodiment of theinvention, as these entities may interact in various combinations, eachleading to the endorsement of merchants' products by users who endorsethe products in conjunction with displaying third party content and makepossible the purchase of said products by other users while they areviewing said third party content, according to the present invention.

In one such embodiment of the invention illustrated in FIG. 10, aservice provider 1010 provides a universal shopping cart 1011 to enablemerchants 1000 to make product placements 1001, passing productinformation about products that are available for sale through theservice provider 1010 using interface 1003 to the universal shoppingcart 1011, as well as a means for receiving sales transactions 1002 fromthe universal shopping cart 1011 via another interface 1004. It shouldbe noted that the interfaces 1003 and 1004 need not be separate, but thefunctions of product placement 1001 and sales transactions 1002 could becarried out over a single interface between the merchant's 1000 systemsand the universal shopping cart 1011. This is in general true of themany interfaces described in various embodiments of the invention—theprecise arrangement of interfaces is not integral to the invention, butrather the exemplary combinations of functionality enabled to be madethrough use of the interfaces is essential to the invention.

Service providers 1010 are common on the Internet today and couldinclude one or more of virtual communities, web hosting facilities,internet service providers, and the like. Service providers 1010 provideendorsers 1020 with a variety of services intended to enable them tomonetize third party content by endorsing products within or associatedwith the third party content. Among these services, service providers1010 provide in an embodiment of the invention the capability toendorsers, using endorsement engine 1012 via interface 1024, toincorporate third party content obtained from hosting site 1031 operatedby content aggregator 1030 into user-managed pages 1013, 1025 or 1026.The third party content is generally created separately from the contentaggregator 1030, with content creators 1050 creating content accordingto their goals and desires. Content creators create content optionallyusing an offline content creation tool 1052 and then uploading thecontent to one or more content aggregators 1030 using an authoring anduploading tool 1051 that is connected via interface 1054. Alternatively,content creators can use an online authoring and uploading tool 1051 tocreate content directly online and to submit it to one or more contentaggregators 1030 using interface 1054. There are a multitude ofwell-known offline and online content creation tools, and many contentaggregators, and the creation, uploading and hosting (in a contentaggregator) of user-generated content is very well known in the art.Service providers 1010 also provide services directly to viewers 1040 ofhosted third party content by enabling them, when viewing user-generatedpages 1013, 1025 or 1026 using a consuming component 1041, to receiveand view product endorsements embedded in or adjacent to third partycontent that is provided as part of user-generated pages 1025, 1026 or1013, to view product details, add products to their personal universalshopping cart 1011, and purchase items directly through the MyMugzy orequivalent widget utilizing the services of the universal shopping cart1011 without leaving the page they are viewing.

While not shown in FIG. 10, which is exemplary but not limiting,endorsers can also obtain content directly from content creators withoutusing the services of a content aggregator 1030, in one of several ways.Content creators often make their content available for download fromtheir own web pages or personal blogs; content from these sources can bedownloaded either in the form of media files that can be loaded directlyinto readily available streaming media hosting software that can in turnbe embedded into user-generated pages 1013, 1025 or 1026. Alternativelyembed code can be obtained from the content creator directly in aprocess directly analogous to that used to host content that resides oncontent aggregator sites. And, as discussed above, there are many meansfor delivery of third party content directly to endorsers, such as onstorage devices or via email.

Endorsers 1020 are thus provided with a rich variety of means ofobtaining and hosting third party content and monetizing that content byembedding or closely associating (by adjacent or close placement onuser-controlled pages) product or service endorsements. In an embodimentof the invention, endorsers 1020 use authoring components 1021 togenerate pages 1013, 1025 or 1026, or combinations thereof. Endorsersconnect via interface 1024 from an authoring component to an endorsementengine provided by service provider 1010. Endorsers can obtain thirdparty content directly from content creators 1050 or content aggregators1030, and obtain embed code or media files which are then uploaded tothe third party engine 1012 of service provider 1010. Endorsers may,according to the invention, browse products that are eligible forendorsement or promotion in service provider 1010's environment eitherby connecting directly to a universal shopping cart 1011 provided by theservice provider or by browsing available products in the third partyendorsement engine if service provider 1010 chooses to configure thethird party monetization system accordingly. Endorsers, after selectingthird party content and appropriate content embed code, and afterselecting products or services to endorse, receive complete embed codeto enable the embedding of a MyMugzy or equivalent software moduledirectly into a finished external page 1025 or a personal home page1026; alternatively the endorser receives embed code adapted forinclusion in pages belonging to, or managed by, the endorsing userwithin the service provider's environment (in these cases the use of anembedded software widget is optional, as the endorsement engine, theuniversal shopping cart and the user page 1013 are all within thedomain, or technical and business operating environment, of the serviceprovider 1010). According to an embodiment of the invention, endorsingusers 1020 are able to monitor and change their endorsement settingsdirectly through the same user interface embedded in pages 1013, 1025 or1026 as is used by viewers 1040; since viewers who want to buy productsand endorsers who want to modify endorsements will need to be identifiedbefore they can conduct such transactions, the universal shopping cartprovides an authentication service that is accessed directly by userpages within the service provider environment, or via the MyMugzy orequivalent widget (under control of the embed code) when viewers accessproduct endorsements from external pages 1025 or 1026. Thus endorsingusers are able to view, monitor and modify their endorsements and thirdparty content from within the hosting page, and viewers are able toview, rate, comment on, and purchase endorsed products from within theuser-managed pages 1013, 1025 or 1026.

FIG. 11 provides an exemplary illustration of an embodiment of auser-controlled online page, in this case an endorser's home page 1101(corresponding for example to element 1025 in FIG. 10). Endorsers mayput any content they desire on such a page, such as a personal profilesection 1104 or other content 1103 that does not use third partycontent. In an embodiment of the invention, a user can place a thirdparty video on her home page 1101 using the MyMugzy widget 1102. Asdescribed above, this or equivalent widgets provide a container forhosting the embed code or media file of the third party content (in thisexample, a “cool video”), and for hosting the embed code for theproduct/service endorsement functionality.

FIG. 12 provides a detailed view of an exemplary embodiment of a MyMugzywidget 1200 of the invention. The widget contains either a media filecontaining third party content or embed code which retrieves the thirdparty content when requested by a viewer, and it contains embed codethat connects back to the universal shopping cart 1011 and allows avisiting user to view product or service endorsements, review or commenton endorsements or endorsed products or services, rate endorsements,endorsers, or endorsed products or services, and purchase products orservices from directly within the widget 1200. In a preferredembodiment, media viewing control 1201 are provided to allow viewers toview third party content in the widget and to control how that contentis viewed (for example, by providing pause, forward and back buttons asshown). Additionally, in a preferred embodiment of the invention,buttons are provided to Buy 1202 endorsed products or services or toEdit 1203 product/service endorsements (this feature is only accessibleto the endorsing user). Product or service endorsements may be madevisible to the viewer in a number of ways according to the invention,including pop up endorsements that are displayed when a viewer mousesover a hot spot in the widget (hot spots may be visible to prompt theuser, or invisible so that users can be encouraged to mouse over itemsin the video in which they are interested, said items optionally beingassociated with hidden hot spots that cause an endorsement to pop up).Alternatively, endorsements can, at the discretion of the endorser, beinserted at fixed insertion points in the third party content (althoughtypically this approach requires that the content creator has previouslyinserted such an anchor or insertion point in his content and made itavailable to third parties for ad insertion). It will be appreciatedthat there are many ways in which controls or buttons can be arranged,and many combinations of controls or buttons that can be provided toviewers. Buttons may be always present, or they may only “appear”(become visible) when they are available for use (for example, an editbutton may be invisible until and unless a visiting user properlyidentifies herself as the endorsing user who is hosting the widget, toprevent other viewers from attempting to edit the endorsements or frombeing confused by the extraneous button).

FIG. 13 shows an example of how use of product placements in third partycontent can result in monetization of that content for its creators1050, its aggregators 1030, service providers 1010, and endorsersthemselves 1020. In an embodiment of the invention, a service provider1010, in step 1301, negotiates revenue share arrangement with one ormore merchants 1010 and stores information pertaining to the agreedrevenue share in a third party endorsement engine 1012. In step 1302,the service provider 1010 negotiates revenue share arrangements with oneor more content aggregators 1030, and stores information pertaining tothe agreed revenue share in a third party endorsement engine 1012. Inoptional step 1303, content aggregators 1030 enable content creators1050 to make content available for use by endorsers 1020. This step isoptional because the service provider could in an alternative embodimentprovide a public online access point to the third party endorsementengine 1012 where individual content creators could agree to one or moreavailable revenue share arrangements provided by the third partyendorsement engine and then upload content directly to the third partyendorsement engine without the involvement of content aggregators 1030(or make it available for upload directly by endorsers). In step 1304,the service provider 1010 informs its users that they now have theability to add third party content to their content pages, and that theabilities to endorse products or services that are described above foruser-generated content are now available to them for third partycontent. That is, the use of third party content and associated productendorsements is promoted within the service provider's user base (andpotentially used as an enticement to grow that user base as well as ameans to monetize the base). In step 1305, interested users becomeendorsers, hosting third party content with associated or embeddedproduct placements, promotions or endorsements. In step 1306, viewers ofcontent, whether hosted in endorser pages 1013 within the serviceprovider environment or on external pages 1025 managed by the endorser,or on endorsers' own home pages 1026, view associated endorsements andoptionally buy products. In step 1307 revenue generated as a result ofproduct or service sales made is distributed to merchants, endorsers,content creators, and content aggregators as agreed, with the balancebeing retained by the service provider. It should be recognized that, inaddition to paying when sales are made, fees may be generated and sharedas described above in description of FIG. 6 for product endorsements inor associated with third party content just as they can be withuser-generated content. The key differences between FIG. 6 and FIG. 13are that the content is generated by a third party rather than theendorser herself, and there are more parties to share any revenue orfees in the case of third party content than in the case ofuser-generated content; the kinds of fees (and indeed the manner ofobtaining ratings, feedback and reputation scores described withreference to FIG. 7 above) are the same whether the content isuser-generated or third-party generated, and the scope of the inventionshould be so considered.

FIG. 14 illustrates examples of possible compensation or revenue shareoptions available to the endorser 1401. In an embodiment of theinvention, an endorser may decline revenue share entirely 1402. In thiscase his reward is advocating for his favorite brand and there is nomonetary compensation. Alternatively, an endorser may elect to accept afull revenue share (monetary compensation) 1403 as previously agreedupon with merchant and service provider 1301. In other embodiments ofthe invention, an endorser may pass all or a specific portion of hismonetary revenue share to one or more designated charities 1404. Systemapproved entities such as non-profits and charities would be availablefor the endorser to select from within the system. In this case anendorser tells a brand what charity to donate his share to. In anembodiment, an endorser who designates all or part of his compensationto go to charity is granted loyalty points or other, non-monetary,recognition rewards as compensation while his preselected charitybenefits monetarily. Another possible scenario in this flexiblecompensation model would be for an endorser to elect to pass all or aportion of his revenue share to his viewing audience in the form of adiscount on purchased products 1405. In this case a discount would beapplied to viewers of his page who purchased endorsed products. Forexample assume an endorser elects to pass 50% of his revenue share; forthe purpose of this example further assume the 50% share for a productis $2.00. The price of the endorsed product is now discounted by $2.00to viewers who make a buying decision from the endorser's page. Theendorser also receives $2.00 in compensation. In other embodimentscontent creators, content owners, virtual communities or any others whomay be due to receive a revenue share may also elect to allocate theirshare flexibly. For example they may elect to pass all or a portion oftheir revenue share to one or more preselected charities or to pass iton as product savings for their viewing audience in the form of adiscount. In this embodiment these allocations are all executedautomatically within the Universal Shopping Cart or MyMugzy widget.

FIG. 15 illustrates the use of the RSS standard technology to enable thesyndication of endorsements along with associated content from within avirtual community or web portal 1500. Content authors can be locatedaway from, or “off”, the virtual community or web portal 1501 orinternal to the virtual community or web portal 1502. In one embodiment,authors register with a virtual community or web portal and then takeMyMugzy to their own web page or web site, as described herein. Inanother embodiment, authors use a virtual portal's hosted MyMugzy 1503to publish, also as described above. In an embodiment of the invention,a toggle switch on MyMugzy allows an RSS publication option. Authorspublish content and specify products to endorse and can either usemerchant supplied promotions (ads) or they can provide their ownendorsing content. These endorsed products are displayed on authors RSSpage 1504. If a user accesses the content from an RSS reader such asGoogle Reader or any other RSS client, any linked endorsements will beretrieved along with the author's content. In this embodiment when aviewer buys directly from an RSS page 1505, he will be directed to theportal's Mugzy universal shopping cart (USC) checkout page 1508. Inanother embodiment a viewer goes to a content page 1506 from an RSSreader page. Content page 1506 is MyMugzy enabled and supports variouscontent such as video, slide shows and text endorsements. If a viewerbuys from this content page, the check out is self-contained in MyMugzyUSC 1508.

FIG. 16 illustrates the use of the RSS standard technology to enable thesyndication of endorsements along with associated content from within ablogging site 1600 or any other content or location capable ofsupporting RSS subscriptions. RSS news authors can take their MyMugzyanywhere and write/endorse, and then publish their articles in allauthorized RSS news outlets. In one embodiment an author registers withBrandBazaar and takes MyMugzy 1601 to their site page. Author thenspecifies products to endorse from BrandBazaar's OpenMarket solution anddisplays endorsed products on his RSS page 1602, 1603 along with hispublished content. An author can either use merchant supplied promotions(ads) or they can provide their own endorsing content. When a useraccesses an author's content from an RSS reader, (such as Google Reader)any linked endorsements will be retrieved as well. In this embodimentwhen a viewer clicks a displayed product from the RSS page 1604 he willbe taken directly to the BrandBazaar checkout page 1608. In anotherembodiment a viewer first goes to a specific content page 1605 (thiscontent page is MyMugzy enabled and supports various content such asvideo, slideshows, articles, etc.). If a viewer then buys directly fromthe content page 1606 he will be taken to the blogging site's Mugzyuniversal shopping cart (USC) 1609 for check out.

FIG. 17 represents the aggregation of data that is continuouslycollected 1708 from the various elements of the invention as content iscreated and viewed and products are endorsed and purchased. A preferredembodiment of the invention includes the continuous collection ofprofile data from endorsers 1700, consumers 1701, content pages 1702 andthe product profiles 1703. Demographic data, user profiles, productcategories, click-through rates and product tags are several examples ofthe type of data that can be collected with this embodiment of theinvention. Analysis of this data can provide powerful information toallow merchants to target market to a specific end user profile.Endorser profile data 1700 is available from virtual communities or webportals. Approximately 50% of consumers 1701 viewing content from avirtual community site will also have profile data available as theytend to be “friends” of the endorser. In one embodiment the system keepscounts of views of content 1702 page and of click-through rates. Fromthis data it can be determined, in an embodiment, what kinds of contentlead to the highest click-through rates for a given product. In anotherembodiment, endorsers that have the highest sell through rates can beidentified. This information can be valuable both to merchants and toendorsers, for example by suggesting what products are likely to be mosteffectively endorsed with a given audience 1701 or content 1702. In yetanother embodiment, merchants can use collected data to determine whichendorsers 1700 they would most desire to participate in a givencampaign, or which endorsers will be eligible for preferred discounts orrevenue share options. Product profiles 1703 are built with datacollected from the universal shopping cart 1705 and from BrandBazaar1704. In an embodiment, consumers can rate 1707 products they purchaseand endorsers and users can tag 1706 products with tags that specifyattributes of the products that the endorsers or users find important,thereby creating valuable product profile information. In an embodimentof the invention, data is aggregated into one or more related databasesystems so that this large data set can be accessed by analytics toolssuch as a Business Intelligence Portal (BI) 1709 and so that the datacollected can benefit merchants, service providers, endorsers andconsumers.

All of the embodiments outlined in this disclosure are exemplary innature and should not be construed as limitations of the inventionexcept as claimed below.

1. An e-commerce system, comprising: an endorsement engine executing ona network-connected server and adapted to enable subscriptions fromusers using a protocol; and interface software executing on anetwork-connected server coupled to the endorsement engine and adaptedto interact with one or more content sources connected over a networkand adapted to enable subscriptions from users using the protocol;wherein the interface software enables an endorsing user to browse thecontent sources and to select a content item, and the interface softwareenables the endorsing user to enter code associated with the selectedcontent element, and the interface software enables the endorsing userto view product information concerning products available forendorsement and to select a product for endorsement, and the interfacesoftware enables the endorsing user to enter code associated with theselected product, the product-specific code compatible with the selectedcontent item; and wherein upon retrieval of content by a viewing userwho previously subscribed to the content source using the protocol, atleast one of the content-specific code and the product-specific code isalso provided to the viewing user via the protocol; and wherein upon theactivation of the content-specific code by a viewing user, the viewinguser is connected to the selected content still located at its originalcontent source and is able to view the selected content while stillconnected to the interface software; and wherein upon the activation ofthe product-specific code by a viewing user, the viewing user isconnected to a network-connected shopping cart, and is thereby enabledto buy the product.
 2. A method for monetizing online content using asubscription protocol, comprising the steps of: (a) transmitting acrossa network information and code related to a specific product from anetwork-connected server to an endorsing user; (b) retrievinginformation and code related to a specific content element suitable foronline display from a third party and making it available to theendorsing user; p1 (c) embedding the product-related code andcontent-related code into a software module executing on anetwork-attached server on request from the endorsing user; (d) enablingsubscription to the specific content element or its source via aprotocol by a viewing user; (e) upon the content-related code beingactivated by the viewing user following retrieval of the content elementaccording to the subscription, enabling the viewing user to view theretrieved content element; and (f) upon the product-related code beingactivated by the viewing user while viewing the retrieved content,connecting the viewing user to a network-connected shopping cart,thereby enabling the viewing user to purchase the product.